All Forum Posts by: Ben Rosenblum

@Colleen F. I did end up doing an Airbnb set up and so far it's been going well. Being close to the highway has netted me quick stays but I also have some weekly rentals for workers traveling and working at a job site in the area. I still have listings up on Zillow and Furnished Finder and have a few showings next week which would be the first mid-longer term renter, but managing the Airbnb to date hasn't been too much of a hassle for me. I do like meeting new people and since I am present or just because I've been lucky, no one has abused my property or even made a mess so far. All told with Airbnb I've been making back more than the mortgage amount in the two months I've done so far. I predict this will decrease a bit as weather changes and hopefully I'll have those longer term renters in place for that. I went with $1000/mo plus 1/4 utilities on my listings in the end and have had decent interest. The fact the bath is shared certainly makes people reconsider but for those looking for month to month or 3 month stays it hasn't been a sticking point. The fact I live in the home has scared off some people wanting to rent my entire home for themselves but a few groups are renting out all 4 bedrooms for quick stays anyway. On Airbnb I chose to use a lower daily rate with a steeper cleaning cost to discourage one night stays (which are the most hassle) and I'm totally booked up for October and quarter-booked for November already so I feel like this method is working at least for now! 

Thank you to everyone who provided their insights and advice. I am currently getting some quotes on air sealing and insulating the home and have decided not to pursue either solar panels nor a new AC. As some have pointed out I do not have a new roof so that would complicate matters. I also do not plan to stay in this home for more than 10 years and ideally I plan transition it to a rental property so it wouldn't make sense long term. I will likely get a smart thermostat (ecobee is what I'm leaning towards) and after insulating the attic I'll just make do with blackout curtains.

Thanks again to everyone who provided input!

Ben

Hi there, I recently purchased my first home, a 5 bed 4 bath which I plan to househack using short term rentals like AirBnb, furnished finder, etc. I've moved in now for 3 weeks and getting things prepared but one aspect of owning a large home (4600 total livable space) is that my energy costs are high. There are two AC units on the home, one very old and working, but noisy and one that is old, but smaller and in better shape per my inspector. I was planning to get Solar before the end of this year as the tax incentives and credits available in Illinois are tremendous, but even with those credits the system I can put on my roof only covers around 65% of my total needs for the year. Once I pay off the loan the savings will be a couple hundred per month, but would investing in a new AC unit actually be more bang for the buck? Obviously less of a hassle, but I do lose out on being "eco-friendly" on AirBnb and the extra equity solar panels would provide. Has anyone had a similar decision to make? What are your takes on Solar panels in general to offset utility costs/add value to home/raise rates on rentals?

@Colleen F. I think I was being a bit dramatic with the "can't afford two months" - that's simply at my current lifestyle. I've been renting until now at well below market rate for my area so I was able to enjoy some more expensive hobbies. Without any roommates I could pay the mortgage/tax, etc. it would just require a lifestyle adjustment. I'm of course willing to make it or I wouldn't have bought the place, but I take your point about en-suite bathrooms. Do you think Airbnb might make more sense for rooms in this situation than long term renters? Appreciate your thoughts!

Self manage, yes since I'll be living there. Still figuring out how much to charge for rent though. I plan to make the house incredibly attractive to specific types of people but I don't want to hold off renting for more than a month or two at the most so I don't want to make the rents TOO high. Essentially I will be making the garage a golf simulator and movie/gaming area. The basement already has a full bar and pool table and the yard is already landscaped, has two small fenced off gardens and a large deck. My initial thought is to rent the two bigger bedrooms for $1500 and the two smaller bedrooms for $1250 but all the bedrooms are upstairs and share one bath. Technically two could use the main floor bathroom, but is what I plan to ask for rent just too much of a premium or would advertising the golf sim, etc. make it still reasonable to find at least the first roommate within 60 days? Any thoughts from your perspective? Or best practices in determining how much to rent rooms? Appreciate any feedback!

Hi I recently purchased a single-family home to house hack. It's a 5 bed, 4 bath where the top floor has 4 bedrooms and the main floor has the master (where I will stay). The home is 3200 sq ft plus a finished basement. The backyard is landscaped and has a large deck and lawn. The driveway is extra wide and there are parking spaces on the street as well. The garage will be converted to a Golf simulator and gaming/movie space. The basement has a pool table, full bar and media space. 

My question is how should I determine the right rent to charge in a place like this. On one hand I want to charge $1500 for the two larger bedrooms and $1250 for the smaller even though the entire upstairs would be sharing the upstairs bathroom (although two could take the main floor bathroom if 4 people in a bathroom is too much). 

I feel like the added golf simulator (which normally costs $40/hr at public facilities) is a huge added value for those people who play golf and would not mind the higher rent payment. Living in a nicer home is a big perk as well as the fact the home is minutes from a train to downtown Chicago or 80 and 355 highways.

The only limiting factor for me is that I cannot afford to pay the full mortgage, taxes, and insurance for more than 2 months without renters so I don't want to price myself out of the market if $1500 for a room that shares a bath is just too much to ask no matter how many perks are involved. 

I'd love your ideas or input especially if you know the area and have managed this sort of challenge before. Even if not in Joliet or surrounding areas, if you have some insights as to what renters would be willing to pay for and why (what do they care for most) or ways to encourage the type of renters I want who will be willing to pay the premium I'd love to hear from you!

Hi, my name is Ben and I've recently been introduced to this community through YouTube videos I've watched. I made my first purchase of a single-family home partly due to the fact my current landlord was selling the unit I was in and I had been paying well under market rental rates. Instead of buying a small condo and living alone I decided it would be exciting and profitable to buy a larger home and live with roommates. In this process I've come to realize how many factors go into getting the right roommates and potentially converting one or more bedrooms into Airbnb short term/long term rentals, although admittedly I am new to both aspects and investment real estate in general and would love to connect with professionals or others who are making similar purchase and living decisions or who have gone down this path in the past. Any and all tips and insights are welcome! I look forward to connecting with more people in this community soon!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $472,000
Cash invested: $23,600

House Hack - 5 bedrooms, 4 bath, 3200 sqft plus 1400 sqft finished basement

What made you interested in investing in this type of deal?

I wanted to set up a situation where I could live for free/cashflow while building equity in my first home. I could then save up to purchase future investment properties after a year or two. I'm not married which makes this move simpler for me and living with roommates is something I don't mind so the idea of House Hacking made sense for my goals.

How did you find this deal and how did you negotiate it?

Found the deal through Zillow. I made an offer 10k under asking. The seller claimed they had an offer (that came in the day after me) which was better. I really liked this property so put in an offer 5k over asking with an escalation clause 2k above my competitor to 15k over asking. It turns out the offer was real and they too made an escalatory offer similar to mine, but came up a few thousand short.

How did you finance this deal?

Conventional loan, 5% out of pocket with 15% gift from family to eliminate PMI.